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Aug 12, 2008 -- Rising prices may prompt shifts at McDonald's, dollar stores
CLARKONOMICS: The rise in food prices is affecting everyone from consumers to business owners. In the latest twist, McDonald's is contemplating changing the double cheeseburger to a double hamburger with a single slice of cheese because the cost of cheese has skyrocketed!
Dollar stores are feeling pinched too. The 99¢ only chain doesn't know what to do as their margins get squeezed. Will they have to become the $1.29 store or the $1.99 store?
Clark recently bought orange juice for his kids and didn't notice the container went from 64 ozs. to 56 ozs. The packaging hadn't really changed, so it was more of a hidden price increase.
Everywhere we turn -- whether we're business owners or consumers -- we all have to cut corners. Christa's favorite fish sandwich now only has a half-slice of cheese.
The takeaway is that you have to work overtime to be a better shopper in this new economic climate.
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What others are saying
Pizza
I manage a Little Caesars Pizza and cheese prices have more than doubled over the last 5 years. We sell $5 larges and it costs us $1.08 per pizza just to put the cheese on it. We are raising our price soon to $5.55
Save for YOURSELF/FAMILY
As consumers,we must think the way a business thinks. We must think "cost margins" Is the product worth the cost/price? Your greatest shopping weapon - SIMPLY WALK AWAY/WAIT FOR SALES.
costs
a good comedian once said "i went to the grocery store and a large can of alpo dog food was $1.19...then i went to taco bell and the big burrito was .99 cents...I refuse to eat where the main course costs less than dog food"
Raising other things other then the Burger
In response to the person who said they should raise the price of a coke and fries, not the burger. Have you seen the price of a soft drink at restruants. Medium cokes START at $1.49. I bought a medium coke at Whataburger for $1.79. Restruants are higher. The only thing we have going for us now is the $0.99 Sweet tea!
Fast food is still to cheap. I think its a conspiracy to get America fattend up for the kill. The price of everything has doubled, but you can still get a burger for a buck.
Rising prices
Thank you minimum wage. That's probably the biggest factor in this not the cost of cheese! Come on figure it out a companies biggest expense is labor. Pay the people what their worth not what the welfare state says they are.
Rising Prices
Woolworth's was once known as "The five and ten cent store" by most people.
MCDonalds
what McDonalds should do is raise the price of fries and drinks and other things likely to be purchased with the dollar burgers. I know the price of fries at my nearby mcdonalds has gone up and that's fine with me because they are holding the line on the dollar double cheeseburger. At some point I may just buy the cheeseburgers and not the fries to go with it. I've noticed others order the double cheeseburgers and a coke, so MCDonalds should be able to profit by raising the price of things likely to be purchased with the burgers. Also, if it was one slice of cheese and the burger remained a dollar, I would still buy it (you are getting two beef patties and some cheese for no increase in price).
Downsizing of products
I sew a lot and just went restock my thread supply. What a surprise! A once 500 yard spool of thread is now 250 yards for the same price.
